Which of the Following Is Not an Application of Accrual

question 122

Multiple Choice

Which of the following is not an application of accrual accounting?

• A)Recognizing revenues when earned and expenses when incurred.
• B)Applying the matching rule.
• C)Adjusting the accounts.
• D)Recording on the basis of actual receipt and payment of cash.

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Definitions:

Compensable Factors

Characteristics of jobs that are valued by the employer and are compensated for in the form of wages, salaries, or benefits.

Stock-Option Plan

a compensation scheme that gives employees the option to buy company shares at a predetermined price, usually as an incentive or reward.

Senior Managers

Individuals at the highest level of organizational management who are responsible for the strategic direction and success of the company.

Predetermined Price

A price set in advance for a transaction, contract, or agreement, often used in budgeting and forecasting.